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Novel Use Case III: Streamlined Charity

Akhil Ramgopal

Head of Product

Using Novel, merchants can seamlessly deploy NFTs as a donation tool that keeps on giving.

The secondary market component of NFTs enables brands to easily spin up a giveback program with a percentage of proceeds going to your charity of choice every time an NFT gets resold.

For example, if a beverage brand launches an NFT, customers reap the benefits of community access and VIP experiences while the brand chooses the nonprofit that proceeds go towards.

On the merchant’s side, the backend intricacies of this charity allocation process are fully taken care of by Novel in partnership with ShoppingGives, while on the customer’s side, engaged users now have an influential voice and can directly participate in community decision-making.

When it comes to streamlining donations, brands can create a collection using Novel and then can set a percentage of proceeds to go to a non-profit every time your NFT is sold. 

Outside of its immediate charitable giving advantages, levering this use case saves merchants valuable time and energy that should otherwise be spent on growth, marketing, and product.

1. Joydays’ CEO on aligning customers with your mission

For Joydays, we’re creating foods to help manage your blood sugar and our target audience is people with Diabetes and other chronic conditions. 

So it makes sense for us to have a charitable component, but more importantly, have the community we are targeting involved as well as benefit directly. We've evolved from the days of buy one, give one. Now, we have the ability to show the customer we walk the walk to increase trust and transparency – and everyone knows that their money is going to the right place. 

We can also boost engagement, get wider exposure, and strengthen our community with NFTs. 

We will be able to add value to the NFTs over time, have an easy way for customers to show allegiance, and become ambassadors of the cause. We’re excited to build not just a great product that fills a big gap in the market, but brings the target customer directly into the community and builds this with us. 

"With 46% of the US population having diabetes and prediabetes, we know this is a massive opportunity to ensure they are having a stake in creating an impact for themselves. It also aligns customers with the long-term mission of the brand, since the secondary market is in perpetuity."

2. Driving tangible value through trust and transparency

By leveraging Novel’s integration with ShoppingGives, secondary market proceeds can be sent directly to the charity of your choice without the need for complicated interfaces or legacy processes. As a result, the flow of donation funds is streamlined with no additional overhead.

NFT-based donations

In parallel with an NFT collection’s community layer, the charity itself can communicate real-time updates and information straight to customers, pulling back the curtain on what’s happening on the ground and how funds are being deployed and leveraged on a day-to-day basis.

Customers who shop online today require significant levels of trust and transparency from the brands that they purchase from and engage with. NFT-based giveback programs can directly improve those levels of trust from a brand’s perspective by cutting out the middleman that’s often required in charitable giving. 

A crucial function of token-driven donations on Novel is the newfound ability for merchants to create dynamic giving experiences that further engage users and incentivize the community.

For example, once a brand or creator’s NFT-gated community decides on their charity of choice to send funds to after a secondary sale, the leaders and organizers of that charity can then come into the group and host AMAs, share live videos and photos of what’s happening regarding use of funds, and structure ongoing community engagement events.

Today, antiquated giveback programs retain an opaque wall between the donation of funds and how those funds are allocated to charitable initiatives. Across the evolving web3 ecosystem, transparency and dynamic experiences are not only required, but they’re par for the course.

Using Novel, anyone who purchased part of an NFT collection and belongs to that gated community now has direct access to information and a voice in the giving process

3. Brian Sugar on streamlining donations for social impact campaigns

The original idea behind Novel came about when I was planning a profile picture drop brand partnership between The Dodo and the World Wildlife Federation (WWF). 

Our plan was to design NFT art of endangered species that customers could buy online. When customers made a purchase, donations would go to the WWF. Every time an NFT was sold from that collection in the secondary market, some percentage of the sale would also go to the WWF.

We were particularly interested in NFTs because of their blockchain functionality, meaning that when a customer wanted to resell an item on a platform like Opensea, the smart contract was already built-in to track donations and secondary sales. Critically, the secondary transaction percentage that would be directed to a charity follows the lifetime of an NFT, as the contract is binding based on the original purchaser. To put it simply, NFTs would streamline everything.

From my point of view, secondary market transaction percentages help both brands and their customers build a long-term relationship with a nonprofit, and more proceeds go back to the charity as tokens get resold. This fundamentally alters the dynamic of modern charitable giving.

Novel helps facilitate this whole process and simplify the end-to-end experience for customers, brands, and the charities or NGOs that they decided to support. From a technical lens, this process is a merging of two really strong technologies that can in turn create something that didn’t exist yet in charitable giving. We saw the value in pulling this move off for The Dodo at the time but didn’t have the tools to execute it. That’s exactly when we started to build Novel.

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